Two days ago, the construction of a 403-kilometer gas pipeline through Sebia was completed, but the pipes remain empty until Bulgaria builds its share.
As construction began without a hitch, two days ago, the Turkish Stream pipeline through Serbia, 403 kilometers long, was completed. This was confirmed for RTS yesterday by the first man of Srbijagas Dusan Bajatovic, pointing out that the pipes of the national main gas pipeline, which is a new alternative supply route for the whole Balkans, were laid through Serbia.
The pipeline will transport Russian gas from Turkey via Bulgaria, Serbia, to Hungary, and further work on gas infrastructure is under preparation. Bajatovic explained that the Danube, Tisa, Morava, all the channels, passageways and the pipes were connected. Work on measuring stations is expected to be completed. With the completion of this route, Serbia will have three exits – near Paracin, Belgrade and Zrenjanin – and it remains to be done for the Banatski Dvor gas storage facility.
– Our advisers said that in this job we were three times more efficient in project development than the leading European companies – said the director of Srbijagas and stressed that all the capacities of Turkish Stream were 100 percent sold.
He repeated yesterday that there are currently problems with works on the route through Bulgaria, and that the complete pipeline through this country, as well as what the Hungarians are expected to do, should be completed by the end of 2020. If the Bulgarians are speeding up, then it will be within timeframe.
As Politika finds out, work in Bulgaria is delayed as the contractor, Saudi consortium Arkad, agrees with subcontractors to let them perform the work. No one is absent from construction. On the contrary. The fight is who will get the job of the subcontractor. And since the deadlines are by which time this work needs to be completed, then they need more subcontractors, says a source for Politika.
Construction through Bulgaria was delayed from the start. The case first went to court in Bulgaria, as the current contractor, Arkad, then sued the second-ranked bidder, considering it damaged, especially after learning that the Bulgarian side is ready to lower the price by 31.5 percent to the newly elected consortium “Gas Development and Extension in Bulgaria” compared to what was originally offered. The Saudi side appealed to the Competition Commission, which ruled in its favor.
Bulgarian gas transport system operator Bulgartransgas and Saudi consortium Arkad signed an agreement in September on the delivery of essential materials and equipment, investment design, construction and commissioning of an expanded gas transportation infrastructure from the border with Turkey to the border with Serbia.
After the signing, the CEO of the Bulgarian operator Bulgartransgas Vladimir Malinov stated that the section of the pipeline through Bulgaria must be completed within 615 days from the date of signing the contract. This will allow Bulgartransgas to deliver the required quantities of gas via the planned route to Serbia and Hungary and then to the gas hub in Austria. Officials expect deliveries of the new pipeline route to begin in 2021.
Asked if Bulgaria is under pressure from the US to slow down the start of construction, Dr Vojislav Vuletic, president of the Gas Association of Serbia, says that it is not a problem with contractors and subcontractors, because it is a big deal and money and everyone is looking to earn something there. He reminds that when signing this agreement, Boyko Borisov emphasized that Bulgaria remains on the gas map, calling the whole project “Balkan Stream”.
– It is good that Serbia has finished its part of the work before the deadline, but the pipes will still be empty. Because without Bulgaria there is no gas. Bulgaria has to build this pipeline because it does not have its own gas or its own storage. Gas is supplied through Ukraine and Romania. In the event that transit through Ukraine is interrupted, they would be left without gas – says Vuletic.
In addition, Borisov is under pressure in his country because they have run out of high transit revenues since the South Stream collapsed, so this mistake should not be repeated to them, which is because of the growth of their economy, and because of energy security, emphasizes Vuletic.
The plan is to build a block, measuring, cleaning and compressor stations on the route through Serbia.
